Cable trades close to 1.603 support as 1.6000 holds firm in yesterday’s trading
A resistance and lower highs formed from 1.613 sees the pair trading below the 104 moving averages as the oversold signal did not attract bullishness on the pair.
We see the lower lows below the 200 hourly average forming a supporting trendline which would signify a bearish movement if it coincidentally breaks the trendline at 1.6000
Cable fell towards 1.6000 psychological level after the Retail Sales month on month change, Mortgage Approvals and Industrial Orders Expectations all fell more than expected. This is what the Bank Of England dreaded as a slowdown is in motion and policy makers have reason to change their minds on the votes yesterday on possible rate increases. The candlesticks remain below the trendline on the H4 charts and below the technical resistance at 1.603.
Preliminary GDP quarter on quarter data to be released later today may finally push GBP/USD down below 1.6000 should sluggish growth speculation turn into reality, as the strong recovery loses steam in the U.K.
Trend Direction |
S3 |
S2 |
S1 |
R1 |
R2 |
R3 |
Entry |
Stop Loss |
Exit |
| Bearish | 1.5900 | 1.594 | 1.6000 | 1.603 | 1.61 | 1.616 |